Dec 17, 2018

Boeing to buy majority stake in Brazil's Embraer

Photo: Silas Stein/picture alliance via Getty Images

Boeing has agreed to buy an 80% stake in the commercial aviation business of Brazil's Embraer at an enterprise value of $5.26 billion.

Why it's the BFD: This is nearly an 11% valuation bump from when a preliminary agreement was first announced this past summer, and means Boeing will become a challenger to Airbus and Bombardier in the smaller passenger jet market.

  • The deal comes after a legal injunction was thrown out by a Brazilian appeals court, although it still requires Brazilian regulatory approval.

The bottom line: "While Embraer has had a fair amount of success with U.S. regional airlines, that's a limited market that can't come close to filling Embraer's production capacity. ... Tapping into Boeing's massive customer base and its sales force is the best way for Embraer to land some significant orders from major airlines, The Motley Fool's Adam Levine-Weinberg writes.

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Situational awareness

Photo: Brett Carlsen/Getty Images

Catch up on today's biggest news:

  1. Mike Bloomberg offers to release women from 3 NDAs
  2. Wells Fargo to pay $3 billion to settle consumer abuse charges
  3. Bloomberg campaign says Tennessee vandalism "echoes language" from Bernie supporters
  4. Scoop: New White House personnel chief tells Cabinet liaisons to target Never Trumpers
  5. Nearly half of Republicans support pardoning Roger Stone

Wells Fargo agrees to pay $3 billion to settle consumer abuse charges

Clients use an ATM at a Wells Fargo Bank in Los Angeles, Calif. Photo: Ronen Tivony/SOPA Images/LightRocket via Getty Images

Wells Fargo agreed to a pay a combined $3 billion to the Justice Department and the Securities and Exchange Commission on Friday for opening millions of fake customer accounts between 2002 and 2016, the SEC said in a press release.

The big picture: The fine "is among the largest corporate penalties reached during the Trump administration," the Washington Post reports.

Bloomberg offers to release women from 3 nondisclosure agreements

Mike Bloomberg. Photo: Brett Carlsen/Getty Images

Mike Bloomberg said Friday his company will release women identified to have signed three nondisclosure agreements so they can publicly discuss their allegations against him if they wish.

Why it matters, via Axios' Margaret Talev: Bloomberg’s shift in policy toward NDAs comes as he tries to stanch his loss of female support after the Las Vegas debate. It is an effort to separate the total number of harassment and culture complaints at the large company from those directed at him personally. That could reframe the criticism against him, but also protect the company from legal fallout if all past NDAs were placed in jeopardy.